Five jailed for fraudulent land sale to Cypriot pension fund
However, the €22m purchase price was reportedly several times its market value, and the defendants were accused of receiving kickbacks to approve the investment.Lillis later agreed to testify against the other defendants in return for immunity from prosecution.The court found Stathis Kittis, former president of Cyta’s board of directors, guilty of corruption of a public official, forgery, circulation of forged documents and money laundering activities, and sentenced him to eight years in prison.Charalambos Tsouris, a former member of the Electricity Authority board of directors and a member of the Cyta board at the time the fraud took place, was found guilty of fraud and abstraction of money under false pretences and jailed for three years.Tsouris was a member of an ad hoc committee Cyta set up to assess whether the Dromolaxia development was a suitable investment for the pension fund.He had drafted a report submitted to the pension fund’s management committee containing false data on the extra surface area added to the development, which unnecessarily raised the project’s cost.The longest jail sentence, nine years, was handed down to Orestis Vasiliou, a director of Cyta’s digital television service Cytavision and, at the time of the deal, general secretary of EPOET-SEK, the Cyta employees’ trade union.Vasiliou took €450,000 in bribes to stop him from inciting opposition to the investment from Cyta unions.He was also found guilty of blackmail and money laundering activities.Also jailed were a land registry official, and a shareholder in Polleson Holdings, a company used to pay some of the bribes.The company itself was found guilty of money laundering and fined €300,000.The court has approved a prosecution request for €750,000 – equal to the total kickbacks received – to be paid by the defendants to the state.The defendants’ lawyers have reportedly said they will lodge appeals against the sentences.The marathon trial started last March.Judgment was delivered on 22 December with sentencing carried out on 5 January. Five people – including the former president of the Cyprus Telecommunications Authority’s (Cyta) board of directors – have been jailed by Larnaca’s Assize Court after it found they had participated in a land scam involving Cyta’s pension fund.The case concerned a plot of land in Dromolaxia, a village near Larnaca International Airport, which was bought by one of the original defendants for €10m in 2010.The purchaser was businessman Nicos Lillis, who at the time was chairman of Alki Football Club, a Cypriot First Division side, now defunct.Lillis bought the land through his company, Wadnic Trading, which developed it into an office complex – the Aero Centre – before selling it the following year to the Cyta Pension Scheme.
More than 95% of asset owners and non-asset owners approved the articles, which reflect the 10 recommendations of the review, carried out by corporate responsibility specialists Carnstone.Since the PRI Association was incorporated in 2010, some signatories have raised concerns about the governance structures, which have been seen as overly complicated and lacking in transparency.In December 2013, eight Danish pension funds including ATP, PensionDanmark and Industriens Pension left the association, although they said they would still follow the principles themselves.The changes include introducing a single governing body, an independent chair, clear responsibilities for the board and committees, and formal reviews by the board.Martin Skancke, chair of the PRI Advisory Council, said: “The governance review demonstrates our commitment to be responsive to the needs and concerns of our divergent signatory base. And the incredibly positive response we have received shows signatories are pleased with the direction we are now taking.”Skancke added: “In addition to a single governing body, the new articles will deliver more opportunities for signatories to participate in governance matters and also broaden the eligibility requirements for directors, promoting diversity while deepening the skills and experience of the board.”The changes, however, have received a muted response from some former signatories.Ole Buhl, head of ESG at ATP, said: “ATP still hopes it will eventually be able to rejoin the organisation. But we find it is too soon to make an overall assessment of the changes made by the private organisation PRI to its governance since ATP’s withdrawal.”Buhl added: “It is worth noting it is still not clear how willing PRI is to make further reforms. It will also take a lot of work to implement several of the reforms discussed between PRI and – among others – ATP in 2014, and that certain aspects of PRI’s governance remain to be discussed in earnest in 2015.”Jens-Christian Stougaard, director at PensionDanmark, saw the changes as “improvements in the right direction”.“We need to see how the changes will affect the governance of the organisation before we can form an informed opinion on it,” he said.“From our point of view, there is still some way to meet our requirements, such as fully respecting the outset of the organisation as an asset owner-led initiative, with the rights and responsibilities that follow.“PensionDanmark still works on implementing the six principles and continues to improve our work on responsible investments. But to consider re-joining the organisation, best practice governance has to be put in place – in letter and in practice.”The changes must now be approved by the asset owner representatives of the PRI Advisory Council at its next meeting in early March.Fiona Reynolds, executive director of the PRI, told IPE recently how the organisation would be changing as it enters its teenage years A proposed new board governance structure for the organisation running the Principles for Responsible Investment Initiative (PRI) has been endorsed by an overwhelming majority of signatories.The vote follows the PRI Association’s 18-month independent governance review and extensive signatory consultation.The changes, which also include new articles of association, are intended to introduce a simpler, more transparent and accountable governance structure, taking effect on 1 April.A record 43% of asset owners voted, the highest participation rate for a signatory vote in the PRI’s history.
Claude Lamoureux, former chief executive at the pension plan, said one major positive impact was building in-house expertise for asset classes such as infrastructure or private equity.He said he was often “surprised” to see trustees and governments paying a lot of money for external managers instead of using the money to pay a competitive salary for an in-house expert.Lamoureux said it was easier to make changes to portfolio structure with in-house expertise rather than replacing external managers.Ambachtsheer said the 2-percentage-point performance differential between externally and internally managed private equity investments was down to costs.“It is only a question,” he said, “of whether you pay it to an asset manager or put it into your profit and loss calculations.”Ambachtsheer said it made sense to run a pension fund like a company with a “philosophy” and “someone in charge”, adding that a scheme could also be seen as a “social enterprise without a bottom line”.He said pension funds should keep in mind that “you need as many instruments as you have goals” and proposed separating the return-seeking pool from the pension payout side, as “you cannot serve both from a single entity, just as you cannot suck and blow at the same time”.ABN Amro’s pension fund in the Netherlands decided to run the scheme like a company after legislative changes in the country last year openned up the possibility of restructuring governance. Geraldine Leegwater, chief executive at ABN Amro Pensioenfonds, said the scheme’s new approach had reduced the time spent in board meetings with the full board, as 90% of the agenda is usually about the running of a “complex financial institution”.Now an executive board is running this day-to-day business, while non-executive board members – the representatives of employer and employees – are included in discussions on strategy and long-term outlook. One solution for pension funds to generate higher returns in a low-yield environment would be to introduce good governance, according to Keith Ambachtsheer, president and founder of KPA Advisory.Speaking at the IPE Conference in Barcelona, Ambachtsheer presented research showing that, over a 10-year period, pension funds with better governance outperformed their benchmarks by 2 percentage points.“Implementing a sensible philosophy over a longer period of time makes a big change,” he said.Ambachtsheer cited the Ontario Teachers Pension Plan, which, over the last 20 years, has outperformed its benchmark annually by 2.2 percentage points on average. 
The UK actuarial association is calling on pensions actuaries to think carefully about climate change and other environmental issues as part of their work.The Institute and Faculty of Actuaries (IFoA), which has been becoming more vocal on environmental issues, published a “Risk Alert” on Friday to inform actuaries that they “should ensure they understand, and are clear in communicating, the extent to which they have taken account of climate-related risks in any relevant decisions, calculations, or advice”.It said that pension funds and other institutions with long-term liabilities should evaluate and manage the impact of changing patterns of temperature and disease on mortality.Institutions with unfunded or partially funded liabilities should evaluate and manage the impact on the covenant of the sponsor and other funding bodies, it added. The IFoA said the alert was asking its members “to think carefully about the consequences of actions they are taking”.Nico Aspinall, chair of the IFoA’s resource and environment board, said: “Many clients of actuaries are exposed to climate change risks and our industry has much to offer when helping all stakeholders to consider the potential impact.“That’s why we’ve issued this alert which will help draw attention to the issue and provide useful information on three types of climate risk: physical, transition, and liability”.The institute said its members should keep up-to-date with the risks developing in the area of climate change “and continue to consider the impacts of their work”.The IFoA suggested actuaries should consult and consider the recommendations issued in December by the Financial Stability Board Taskforce on Climate-related Financial Disclosures.In addition to the “Risk Alert”, the IFoA published a more detailed guide for pensions actuaries on a wider range of environmental and natural resource issues. These may be less visible and less well understood than issues usually considered by pensions actuaries, the institute said.Colin Wilson, IFoA president, said: “There is increasing consensus that environmental issues are an area of financial risk that actuaries should consider in their work, particularly those relating to climate change. This is already happening in the sectors of general insurance and investment – we believe pensions funding is the logical next step.”Environmental issues could affect covenant assessments, funding advice, and mortality, according to the institute’s guide.It said that “resource and environment issues” would rarely be the top priority for a pension scheme, but were illustrative of more general challenges facing pensions actuaries, such as a tendency for covenant assessments to focus on short-term, quantifiable aspects.“For some schemes, the most relevant consideration may be the extent and speed at which insurers factor [resource and environment issues’] impacts into annuity pricing,” it said.Falco Valkenburg, chairperson of the pensions committee of the Actuarial Association of Europe (AAE), told IPE that AAE was also looking into climate risks, having set up a task force on risk management to consider this topic.
The Dutch Pensions Federation has objected to European supervisor EIOPA directly approaching individual pension funds to collect statistical data.In a response to EIOPA’s consultation on the pension fund data collection proposals, the trade body said that, in order to save costs, the data should be supplied through local supervisor De Nederlandsche Bank (DNB).Last summer, the European watchdog launched its consultation aimed at enhancing transparency and comparability of pension funds, as well as stabilising the financial system.The sector organisation called upon EIOPA, the European Central Bank and DNB to align all required reporting as much as possible, in order to keep the administrative burden – which would come at the expense of pension funds’ participants – as low as possible. It suggested that DNB could extract the required data for the European regulator from local reports.To enable this, EU member states should be given more flexibility on data collection and distribution, with a key role for local supervisors because of the amount of information that is already locally available, the federation argued.It suggested the introduction of a one-stop shop with reporting requirements tailored as closely as possible to the current reporting rules.The federation said it preferred a basic data request “as to determine the level of detail”, and that every data item should be requested only once.In the trade body’s opinion, data should be aggregated and validated at country level, and based on the local balance sheet.The federation said it had co-ordinated its response with several pension funds and service providers and that it worked closely with DNB.German and British pension fund trade bodies have also criticised EIOPA’s plans, as has PensionsEurope, the EU-wide trade body for pension schemes. The latter has called into question EIOPA’s legal basis for requesting the data.
Dutch pension funds want consultants to focus on the details of risk attitudes, reducing investment risk, and increasing illiquid investments as part of a new three-year cycle of asset-liability management (ALM) studies.According to pension advisers, schemes also want them to take into account subjects such as their “premium funding” – indicating whether a scheme’s assets rise or fall as a result of contributions – as well as inflation and climate change.The new ALM angles from schemes mean a change of focus for the triennial studies. When the new financial assessment framework (nFTK) was introduced in 2015, ALM studies focused in particular on issues such as indexation and contributions, establishing a risk attitude, a one-off increase of the risk profile of investments, and risk hedging for schemes with a low funding ratio.Three years ago, pension funds established acceptable minimum funding levels and assessed the chances of indexation or benefit cuts, depending on their funding positions. Caroline Bosch, Sprenkels & Verschuren“For example, a pension fund that had capped rights discounts to 10% at the time, now wants to decide on a time horizon.”Sacha van Hoogdalem, partner at Ortec Finance, added that it was also important to find out whether the risk attitude among a pension fund’s participants, board and social partners had changed.However, Wichert Hoekert, senior consultant for retirement solutions at Willis Towers Watson, said there was little enthusiasm for such a survey among his clients “as trustees expected no changes”.Since 2015, premium funding of most schemes has dropped following a fall in interest rates, and trustees wondered if this was still a balanced situation for all participants, Bosch said.“A structurally low premium funding [level] comes at the expense of a scheme’s coverage ratio, which means that pensioners would contribute to the pensions of workers,” she said.According to Van Hoogdalem, pension funds could, for example, decide on a minimum level for their premium funding.“If this floor has been reached, contributions will rise or pensions accrual will drop,” she said.Investment risk plans“Many trustees still vividly remember the situation in 2007, when coverage levels were high, but investment risk was not reduced.”Wichert Hoekert, Willis Towers WatsonDuring the new round of ALM studies, pension funds in good financial shape would like to establish funding level triggers for reducing investment risk.Hoekert said: “Many trustees still vividly remember the situation in 2007, when coverage levels were high, but investment risk was not reduced.”Ortec’s Van Hoogdalem pointed out that pension funds – particularly those short of the required funding level for full indexation of approximately 125% – in particular wanted to know whether they could exchange risks without their funding requirements being raised.“This means exchanging investment risk, such as equity for property, or adding equity to the portfolio to reduce interest rate risk,” he said.Bosch observed that pension funds also wanted to know whether the addition of illiquid investments – such as real estate, mortgages, direct lending and infrastructure – would raise returns against an acceptable level of risk.“Trustees indicate which asset classes they want to be taken into account in the ALM study,” she said. “We noticed that they hardly mentioned hedge funds and private equity.”Sander Gerritsen, head of investment strategy at Wilis Towers Watson, said that pension funds also wanted to know whether they had properly explained their choice for certain investments, such as residential mortgages.According to Gerritsen, pension funds also asked to look at high-inflation scenarios – contrary to three years ago, when the emphasis was on deflation.Bosch of Sprenkels & Verschuren pointed out that assessing inflation risk hedging was difficult “because reducing the interest rate hedge in favour of inflation cover would lead to a rise of the required funding ratio”.“In addition, trustees often find products for hedging inflation more complicated than products for covering interest risk,” she said.Gerritsen added that pension funds wanted to have scenarios for climate change to be factored into their ALM study for the first time: “Their question is what the impact on oil prices would be and, for the longer term, the effects on risks and returns of asset classes.” “They are now assessing whether their adopted risk attitude is still the right one and whether they can further detail the limits,” said Caroline Bosch, partner at Sprenkels & Verschuren.
The IA has proposed a “new partnership between pension schemes and the investment management industry” around three central planks:Developing frameworks for responsible and sustainable investment;providing access to a wider range of asset classes, including illiquids; andbuilding broader member engagement and confidence in long-term investing.Jonathan Willcocks, global head of distribution at M&G Investments, backed the call to allow greater access to non-mainstream assets.Speaking at the IA’s conference, Willcocks said: “My solution is to try to get illiquid assets away from [being seen as] just pure institutional assets, and bring them into a more retail space to give investors and savers a choice whether they take their pension pot at 65 and access more illiquid assets.” Caroline Escott, PLSACaroline Escott, policy lead for investment and defined benefit at the Pensions and Lifetime Savings Association, said it was essential to have an investment market that worked “efficiently, transparently and in the best interests of pension schemes and pension savers”.DC schemes have been boosted by the introduction of auto-enrolment of workers into company plans in the UK since 2012. Under the auspices of the new programme, more than 9m new savers have been brought into the pensions industry, according to government data.While such funds are allowed to access more illiquid assets, because of regulatory concerns over higher charges – and, in certain cases, performance fees – many DC schemes tend to invest in more traditional bond and equity options.Earlier this month Mark Fawcett, chief investment officer of DC master trust NEST, said asset managers risked missing out on the rapidly growing DC market if they did not “raise their game” to provide new products to the sector.“My challenge to you today, if you are in that business, is think about some of the comments I’ve made, and think about the right structures for this DC market,” Fawcett told delegates at an industry conference. “We are not the only scheme that will be growing strongly. I think it is a massive opportunity.” The UK’s Investment Association (IA) has called for measures to allow defined contribution pension funds greater access to illiquid assets, such as infrastructure and property.As part of the launch of a report – Putting Investment at the Heart of DC Pensions – at its inaugural policy conference in London yesterday, the asset management trade body said it was critical that “every saver has the ability to access the full range of investment opportunities”.The investment universe had changed fundamentally since the introduction of auto-enrolment in 2012, said Chris Cummings, the IA’s CEO.“Auto-enrolment is a game changer,” he said. “Investment is the beating heart of the pensions system and is one of the most important factors in determining the value of savers’ pension pots. That is why investment needs to be made a greater priority for defined contribution pension schemes.”
And Mr McSweeney is marketing 38 Arura St in MansfieldMr Butler said buyers were also “turned off” by properties that were dirty or not well maintained.He said he had inspected properties that were only three months old only to find soap scum all over the glass, and mouldy grout. “Buyers want to know that they are purchasing a home which has been well looked after,” he said.“It is a vote of confidence when it comes time to make the decision to purchase or not. “One of the things that we always look for is that anything that should be working, is working. Lights, hot water, appliances, doors.“If some of these items are not working correctly it could be a possible red flag or a mark against the property.” Ms Harvey has this spotless home at 52 Lytton Rd at Bulimba on her booksMs Harvey said adding some greenery was also a plus, saying they made potential buyers feel more at home.She also suggests “white and more white” for the interiors, saying it appealed to more buyers.“I know The Block (judges) says it can be bland but that’s why they invented styling,” she said. “Taking as much as you can back to white within your budget is going to appeal to the most number of buyers … now with white I mean neutral so it can be cream, or vanilla or egg shell or white on white (yes that is a colour) so just think neutral.“And last but not least styling — be still my beating heart — you can make anything look amazing with the latest furniture and on trend knick knacks.” Generic image of home decor renovation. Woman holding paint swatches.The summer break is about more than just putting on a few kilos and watching the cricket.For many homeowners, it is a chance to do some much-needed DIY.But not all renovations or restorations are created equal.Place Bulimba agent Shannon Harvey, Cohen Handler buyers agent Jacob Butler and Ray White Carina principal Andrew McSweeney share their tips on how to get the best bang for your buck.“Whether you live in the best part of town or the worst, the cheapest way to increase your sale price is declutter — and it costs nothing,” Ms Harvey said.“People buy homes off thumbnail size images on their phone. Less is more. All those bits and pieces that collect dust and you never use look even worse downsized to a photo so declutter.“Next clean, clean and did I mention clean and don’t forget the oven.”
Generic image of home decor renovation. Woman applying glue to wallpaper as man stands on ladder sticking wallpaper to wall.More from newsParks and wildlife the new lust-haves post coronavirus14 hours agoNoosa’s best beachfront penthouse is about to hit the market14 hours agoMr Butler agrees, saying painting was the cheapest and quickest way to add value to a home. “Especially if the property has been a rental property, the paint colour is quite often dated, and there is usually a lot of wear and tear,” he said.“Think white and bright, as this is the most neutral and appeals to the widest audience. “But don’t kid yourself, if you aren’t good at painting, or don’t have the time, pay someone to do it properly, as a rushed job is obvious and can turn buyers off.”For Mr McSweeney, a house wash can be one of the best things to do to improve street appeal. “Gardens, lawns and fencing are a very cost effective improvement. New mulch, flowering plants and green grass are so appealing to families looking to enjoy the outside spaces,” he said.“Internally paint and plaster will go a long way to give a property a fresh look and cleaned or new carpet changes the feel straight away. “In all the wet areas of the home, (kitchens and bathrooms) re-grouting and new silicone will refresh those mouldy tired areas.”
The back of the home. Photo: Christopher Frederick Jones.Mr Moore has had more time on his hands since retiring from international rugby in 2017.On their return to Brisbane, the couple started designing a family home that would accommodate their three children.To achieve their vision, they engaged architect, Tim Stewart, and builder, Graya Construction.The new house is not your average Queenslander. More from newsParks and wildlife the new lust-haves post coronavirus12 hours agoNoosa’s best beachfront penthouse is about to hit the market12 hours ago MORE: Old meets new in Bulimba home reno The living, kitchen and dining area of the home. Photo supplied.It has five bedrooms over three levels — all boasting views of the city.“When we first walked into the house, it was a bit surreal,” Mr Moore said. “You’ve been talking about this dream for so long. For almost two years, we were planning, designing and looking at models on a computer screen, and then you’re actually standing inside it. “It was a feeling of achievement mixed with this sense of relief.” There are even city views from the bath tub. Photo: Christopher Frederick Jones.High quality materials such as timber, PGH Bricks & Pavers brickwork and polished concrete have been used in neutral tones.A brick feature wall and an archway in the backyard add a stylish touch, while keeping the home low maintenance and child-friendly. The view of the city from the internal staircase. Photo: Christopher Frederick Jones.“The challenge was that we needed a material that could stand the test of time for our kids, but we still wanted it to feel very minimalist and stylish,” Mrs Moore said.“It looks really beautiful, and we don’t need to worry about cleaning it after the kids rub their dirty hands on the wall when they run up the stairs or play outside.” The original house on the Paddington site where former Wallabies great Stephen Moore has built his new home. “For almost two years, we were planning, designing and looking at models on a computer screen, and then when we were actually standing inside it, it was surreal.”
Former Wallabies hooker Stephen Moore, with his wife, Courtney, and two of their children at their new home in Paddington. Photo: Mindi Cooke.FORMER Wallabies captain Stephen Moore has finally revealed his Brisbane dream home — two years after first tackling the new challenge. After living in 12 different properties over the past decade, the Queensland rugby legend and his wife, Courtney, are putting down roots, having finished building their forever home in the sought-after suburb of Paddington.“We were talking about this dream for so long,” Mr Moore told The Courier-Mail. RELATED: Darius Boyd’s big project revealed The new home of former Wallabies’ skipper Stephen Moore. Picture: Nigel Hallett.The Howard Street property was once home to a rundown, character house, which was torn down to make way for the modern masterpiece that exists now.Records show Moore bought the original, two-bedroom house on the site a decade ago for $1.4 million, just before he moved to Canberra.On the high side of Howard Street — next door to former Bronco Darren Lockyer’s old house — the property offers panoramic views of Brisbane city and surrounds. The outdoor area of the new home of former Wallabies hooker Stephen Moore. Photo: Christopher Frederick Jones.The minimalistic kitchen features Caesarstone benchtops and Sub-Zero and Wolf appliances.“We wanted to make sure the kitchen was positioned we could see our children playing in the pool while we were cooking or in the living room,” Mrs Moore said.Mr Moore said they planned to live in the home for at least the next decade.“There’s something to be said about designing a home with and for the people you love most,” Mr Moore said.“After all this time, we’ve got a place we can call home — and that’s a really good feeling.” Mr Moore owns a number of other properties in Brisbane, including a house in Red Hill and units in South Brisbane and Alderley. One of the bedrooms in the new home of former Wallabies hooker Stephen Moore. Photo: Christopher Frederick Jones.
Reetec GmbH, a subsidiary of EDF Energies Nouvelles, has acquired the German company Offshore Wind Solutions GmbH (OWS), a specialist in the offshore wind Operations and Maintenance (O&M). Through this acquisition, EDF Energies Nouvelles confirms its ambition to expand in Germany and to strengthen its offshore wind activity, the company said.Founded in 2014, OWS is responsible for O&M at the BARD Offshore 1 wind farm, located in the North Sea, 95km off the German coast. This wind farm consists of 80 BARD 5MW turbines.The acquisition of OWS comes alongside the renewal of the offshore wind facility maintenance contract for 10 years, by its owner Ocean Breeze Energy, a subsidiary of the UniCredit Bank group.Through the acquisition of OWS, EDF Energies Nouvelles added 188 experts to Reetec’s roster which will now have more than 350 O&M specialists across offshore and onshore wind business areas.OWS also has an Operations Control Center for offshore wind in Emden.Antoine Cahuzac, EDF Group’s Senior Executive Vice President, Renewable Energies and CEO of EDF Energies Nouvelles, said: “We are delighted to welcome the OWS staff who will share its unique experience of the O&M activity in the offshore wind sector with EDF Energies Nouvelles. This deal is a good opportunity for the EDF Group which has strong ambitions in the offshore wind project development, in line with its CAP 2030 strategy aimed at strengthening its presence in renewable energies by 2030, both in France and abroad by 2030.”